Adjusted EBITDA increased 4% to $15.2 million, representing 14% of revenue, driven by cost management and business transformation efforts.
Cash balance increased to $95 million, up $7 million from the previous quarter.
Non-GAAP earnings per share was $0.11, slightly down from $0.12 in the prior year quarter.
Operating cash flow improved to $10 million, a $12 million increase from last year, resulting in $5 million of positive free cash flow.
Xperi reported Q2 2025 revenue of $106 million, down 11% year-over-year, primarily due to lower minimum guarantee arrangements and divestiture impacts.
Adjusted EBITDA was $647 million with a margin of 17.3%, up 240 basis points year-over-year.
Adjusted pretax income grew 39% year-over-year to $128 million, with a 100 basis point increase in adjusted pretax margin.
Hyperscaler-related revenue nearly doubled to $400 million in Q1, on track for a $1.8 billion target in fiscal 2026.
Kyndryl Consult revenue grew 30% year-over-year, now running at an annual pace of over $3 billion.
Kyndryl reported Q1 fiscal 2026 revenue of $3.7 billion, slightly up year-over-year on a reported basis but down 2.6% in constant currency due to the focus accounts initiative.
Net capital expenditures were $97 million, and free cash flow was a $222 million outflow due to seasonal factors.
Net leverage ended the quarter at 0.6x adjusted EBITDA, well within the target range, and the company maintains investment grade ratings.
The company repurchased 1.8 million shares for $65 million in the quarter, with $141 million remaining under the current authorization.
Dafinchi